Oil prices rise after U.S. crude stockpile drop

Oil prices rebounded on Wednesday after a steep fall in the previous session when OPEC and its allies’ decision to extend output cuts was not enough to counter investors’ concerns about the slowing global economy.

Prices were supported by a strong U.S. stock market opening and widely watched data showing a larger-than-expected drawdown in U.S. crude oil inventories, with government data due later in the day.

Brent crude futures LCOc1 for September delivery were trading up 95 cents at $63.35 a barrel by 1350 GMT.

U.S. crude futures for August CLc1 were up 76 cents at $57.01 a barrel. Both benchmarks fell more than 4% on Tuesday on worries about a global economic slowdown.

The Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices.

“We had a pretty sharp correction yesterday so after that, a little rebound is expected. Globally, the market is concerned about oil demand growth potential,” Olivier Jakob of Petromatrix consultancy said.